GL $2-16($Algo$)$ Great Adventures Continuing Problem $($LO$2-3,2-4,2-5,2-6,2-7,2-8)$Tony and Suzle graduate from college in May $2024$ and begin developing their new business. They begin by offering clinics for basic outdoor activities such as mountain biking or kayaking Upon developing a customer base, they'll hold their first adventure races.These races will involve four$-$person teams that race from one checkpoint to the next using a combination of kayaking, mountain biking, orlenteering, and trail running. In the long run, they plan to sell outdoor gear and develop a ropes course for outdoor enthuslastsOn July $1,2024,$ Tony and Suzie organize their new company as a corporation, Great Adventures Incorporated The articles of Incorporation state that the corporation will sell $39,000$ shares of common stock for $$1$ each. Each share of stock represents a unit of ownership. Tony and Suzle will act as co$-$presidents of the company. The following business activitles occur during July for Great Adventures.July $1$July $1$July $1$Sell $$19,500$ of common stock to suzie.Sell $$19,500$ of common stack to Tony.Purchase a one$-$year insurance policy for $$4,440($$$370$ per month$)$ to cover injuries to participants during outdoorCALTLCOJuly $2$July $4$July $7$Pay legal fees of $$1,900$ associated with incorporation.Purchase office supplies of $$1,600$ on account.Pay $$380$ to a local newspaper for advertising to appear immediately for an upcoming mountain biking clinic to be held on July $15.$ Attendees will be charged $$50$ on the day of the clinic.July $8$July $15$Purchase $10$ mountain bikes, paying $$13,780$ cash.On the day of the clinic, Great Adventures receives cash of $$2,500$ from $50$ bikers. Tony and suzie conducts the mountain biking clinic.Because of the success of the first mountain biking clinic, Tony and Suzie holds another mountain biking clinic, and the company receives $$3,000.$July $24$Pay $$810$ to a local radio station for advertising to appear immediately. A kayaking clinic will be held on august $10,$ and attendees can pay $$140$ in advance or $$190$ on the day of the clinic.July $30$Great Adventures receives cash of $$8,400$ in advance from $60$ kayakers for the upcoming kayak clinic.The following transactions occur over the remainder of $2024.$August $1$Great Adventures obtains a $$38,000$ low$-$interest loan for the company from the city council, which has recently passed an initiative encouraging business development related to outdoor activities. The loan is due in three years, and $5\%$ annual interest is due each year on July $31.$August $4$August $10$The company purchases $14$ kayaks, paying $$22,100$ cash.Tony and Suzie conduct the first kayak clinic. In addition to the $$8,400$ that was received in advance from kayakers on July $30,$ the company receives additional cash of $$3,800$ from $20$ new kayakers on the day of the clinic.August $17$August $24$September $1$Tony and Suzie conducts a second kayak clinic, and the company receives $$10,500$ cash.Office supplies of $$1,600$ purchased on July $4$ are paid in full.To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $$2,520($$$210$ per month$)$ in advance.September $21$Tony and Suzie conduct a rock$-$climbing clinic. The company receives $$14,400$ cash.Tony and Suzie conduct an orienteering clinic. Participants practice how to understand a topographical map, read an altimeter, use a compass, and orient through heavily wooded areas. The company receives $$19,288$ cash.December $1$Tony and Suzie decide to hold the company's first adventure race on December $15.$ Four$-$person teams will race from checkpoint to checkpoint using a combination of mountain biking,kayaking, orienteering, trail running,climbing skills. The first team in each category to complete all checkpoints in order wins. The entry fee for each team is $$680.$December $5$To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid sse in salary for each team that competes in the race. His salary will be paid after the race.December $8$The company pays $$2,$ee to purchase a permit from a state park where the race will be held. The amount is recorded asa miscellaneous expense.December $12$The company purchases racing supplies for $$3,00$e on account due in $30$ days. Supplies include trophies for the top. finishing teams in each category, promotional shirts, snack foods and drinks for participants, and field markers to prepare the racecourse.December $15$December $16$The company receives $$27,200$ cash from a total of forty teams, and the race is held.The company pays Victor's salary of $$2,000.$The company pays a dividend of $$4,800($$$2,40$ to Tony and $$2,400$ to suzie$).$Decemberusing his personal money, Tony purchases a diamond ring for $$5,300.$ Tony surprises suzie by proposing that they get married. Suzie accepts and they get married!The following information relates to year$-$end adjusting entries as of December $31,2024.$a$.$ Depreciation of the mountain bikes purchased on July $8$ and kayaks purchased on August $4$ totals $$7,160$b$.$ Six months' of the one$-$year insurance policy purchased on July $1$ has expired.C$.$ Four months of the one$-$year rental agreement purchased on September $1$ has expired.d$.$ Of the $$1,600$ of office supplies purchased on July $4,$ $$310$ remains,e$.$ Interest expense on the $$38,000$ loan obtained from the city council on August $1$ should be recorded.f$.$ Of the $$3,000$ of racing supplies purchased on December $12,$ $$210$ remalns.g$.$ Suzle calculates that the company owes $$13,000$ in Income taxes.GeneralGeneralRequiremeritJournalLedgerTrial BalanceIncomeStatementStatement ofBalance Sheet$1.$ Record each of the transactions listed above in the 'General Journal' tab $($these are shown as items $1$ to $27).$ Review the'General Ledger and the 'Trial Balance' tabs to see the effect of the transactions on the account balances$\mathrm{.}2.$ Record the adjusting entries in the 'General Journal tab $($these are shown as items $28$ to $34)\mathrm{.}3.$ Review the adjusted 'Trial Balance' as of December $31,2024\mathrm{.}4.$ Prepare an income statement for the period ended December $31,2024,$ in the 'Income Statement' tab$\mathrm{.}5.$ Prepare a statement of stockholder's equity for the period ended December $31,2024,$ in the 'Statement of Stockholder's$6.$ Prepare a classified balance sheet as of December $31,2024$ in the 'Balance Sheet' tab$\mathrm{.}7.$ Record the closing entries in the 'General Journal' tab $($these are shown as items $35$ to $37).$